LLC or C-Corp?

[newtodaycare22]

Going through my last step of licensing, and now I'm looking into having my company become an LLC or C-Corp. I'm so confused as to what's best for child care. Any thoughts? I'd love your opinion. I am the only owner. Thanks!

[emosks]

I am set up as an LLC.

[gbcc]

What would be the purpose for being set up as LLC vs sole prop.?

[Michael]

I have both. Suggest you create a LLC (Limited Liability) unless you are planning on expanding to a center based facility with employees.

[newtodaycare22]

LLC Process

Ok, that's what I thought. Thanks. Now my next question...did you go through a website /was it worth the money...or did you submit all the paperwork on your own? It seems like a semi complicated process :-/ Thanks again!

[Genesis Lady]

creating an LLC

I am not sure what the requirements are for your state, I am in Michigan and it was pretty simple. Check your state website for instructions. I was able to create my LLC all on line, in one day for only $50.

[tenderhearts]

I have considered doing the LLC thing to. How does it change your business? Do you have to open a seperate business account and do 2 different taxes, one personal one business?

[newtodaycare22]

Genesis...

What website did you use (or was it through your state)?

[Genesis Lady]

forming an LLC

I did not use a third-party site. I completed the process online at my state website. You will need to submit Articles of Organization to your state and pay the filing fee. Most of the instructions you need are right on your state website. For some of the things I was unclear on the first time (I have 2 LLC's) I just called the State of MI, they were very helpful. The state can and will not give you any legal advice, however they will give you instructions on how to file your documents. I did not have time to do an extensive search but this is what I found quickly.. http://www.dat.state.md.us/sdatweb/artorgan.pdf
Just go to your state's site Maryland.gov and go to online services and search how to start a business in Maryland.

Hope this helps!

[Michael]

What website did you use (or was it through your state)?

There is only my opinion and I suggest if you have legal questions you consult a lawyer (ok, now that that is out of the way)

I have several businesses. I've done them all via my lawyers and/or website. I did Daycare.com LLC online using http://www.mycorporation.com/

I suggest after the first year you have your accountants or lawyers handle the yearly state notification that way you are not paying the $150 for the website to do it.

There are other sites like http://www.LegalZoom.com and http://www.incorporate.com/

The LLC is very helpful in protecting yourself, assets and home from your business. The structure also helps in managing your business write offs and deductions since you can separate them from your personal tax returns. I would not start a business without creating at least an LLC. The cost in California is $800 a year.
One of my other companies is http://www.ccin.com which is a c-corp. We have multiple offices/properties and officers/employees. You need to have a board with quarterly meetings and logged minutes for your records.

Although state laws differ here is a simple explanation: http://en.wikipedia.org/wiki/C_corporation

[Childminder]

I'm a S-corp and had my tax preparer do it.

[Genesis Lady]

do it yourself LLC

There is only my opinion and I suggest if you have legal questions you consult a lawyer (ok, now that that is out of the way)

I have several businesses. I've done them all via my lawyers and/or website. I did Daycare.com LLC online using http://www.mycorporation.com/

I suggest after the first year you have your accountants or lawyers handle the yearly state notification that way you are not paying the $150 for the website to do it.

There are other sites like http://www.LegalZoom.com and http://www.incorporate.com/

The LLC is very helpful in protecting yourself, assets and home from your business. The structure also helps in managing your business write offs and deductions since you can separate them from your personal tax returns. I would not start a business without creating at least an LLC. The cost in California is $800 a year.
One of my other companies is http://www.ccin.com which is a c-corp. We have multiple offices/properties and officers/employees. You need to have a board with quarterly meetings and logged minutes for your records.

Although state laws differ here is a simple explanation: http://en.wikipedia.org/wiki/C_corporation

While I definitely agree that if you have "legal" questions you should consult an attorney or utilize the services of a company like Legal Zoom. I also know first hand that creating my LLC in the State of Michigan was a pretty simple and straightforward process. Most states require that you submit Articles of Organization which is about a 3 page fill-in-the-blank form. The annual statement that is required is also fill-in-the-blanks. They send you a notification when it is due and you send it in with your fees. I started to go with Legal Zoom, but deciding against paying someone else $100 - $200 to fill-in-the blanks. IMO unless you have partners, legal concerns etc. It is pretty simple to do on your own. The only questions I had to call the State for were setting up my ELF account, which is basically the account for payment of fees.

Hope everything works out for you!